Telangana moots slew of measures to speed up PNG network expansion

Days after the Centre nudged States to help in city gas distribution (CGD) network expansion for more users to transition from LPG to piped natural gas, Telangana government has proposed a slew of measures, from easing the process of approvals, permitting round-the-clock work and waiving certain charges.

The CGD entities will be accorded permission within 24 hours of their application failing which it will be ‘deemed permitted’ and they can proceed with the work after intimating the departments concerned, the State government said in the GO notified on March 25. Under another enabling proposal the companies will be permitted to dig and restore on their own thereby eliminating the restoration charges. However, the need to provide a bank guarantee up to a maximum of ₹10 lakh per kilometre.

The State government has also decided to waive the rental/lease charges for laying/operating the CGD network while also allowing the companies, subject to compliance with noise pollution norms, to carry out work, including pipeline laying and construction activities round-the-clock.

“All seasonal restrictions on carrying out CGD-related [work] is relaxed with the CGD entity responsible for implementing appropriate safety and environmental protection measures,” according to the GO, which according to a senior official in the oil industry pave way for taking up work even during the ensuing monsoon. Time-bound, till September 30, the measures assume significance as expansion of the CGD network would in the long-term pave the way for reduced consumption and import of LPG – India imports 60% of its LPG requirement.

In the near-term, the implementation of the facilitating measure would translate into an additional 10% allocation of commercial LPG by the Centre. LPG supplies to commercial users have come under strain ever since the war in West Asia broke out in February-end impacting the imports and government prioritising supplies to domestic consumers. The Centre has capped commercial LPG allocation to the States at 50% with a portion of it tied to measures facilitating long-term transition to PNG.

Committees of officials are also be set up both at the State and district levels to look into the approval of CGD applications and for resolving grievances. Chief Secretary will be chairman of the 16-member State level CGD expansion committee with Special CS MA&UD department as the Member-Convenor.

Encouraging piped natural gas usage has become critical as PNG is available to a significant extent in the country. Five CGD entities, authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB), are operating in Telangana. They have been allocated GAs or geographical areas and they count households, motorists and industries among their customers. The State has 1.03 lakh domestic PNG connections. The daily sales of commercial PNG is 6,108 cubic metres, while industrial PNG volume is 2.87 lakh cubic metre. There are as many as 226 CNG stations.